C v Cotton Traders Vs Income Tax Officer — Income Tax | Punjab & Haryana HC (2025)

C v Cotton Traders Vs Income Tax Officer — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of the Co-ordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 21509-2023, decided 29.07.2024), which had allowed writ petitions on the same issue with liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised; all pending applications, if any, also stand disposed of.

Issue for consideration

Whether the notice dated 25.06.2025 issued under Section 148 of the Income Tax Act, 1961 and the consequential actions for AY 2019-2020 were issued without jurisdiction by the Issuing Authority, having regard to the CBDT circular/notification dated 29.03.2022 enumerating that the NFAC has exclusive power to issue notices under Section 148.

Court's answer

The Co-ordinate Bench decisions of this Court in Jatinder Singh Bhangu and Jasjit Singh allowed writ petitions on the same issue as raised in the present writ petition, granting liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised; the present petition is therefore covered by those judgments.

Ratio / Principle

In view of the coverage by the Co-ordinate Bench decisions, the present writ petition is disposed of in terms of Jatinder Singh Bhangu (decided on 19.07.2024) and Jasjit Singh (decided on 29.07.2024).

Detailed headnote1 paragraphs

Writ Petition — Income Tax — Notice under Section 148, Income Tax Act, 1961 dated 25.06.2025 for AY 2019-2020 challenged on the ground that the Issuing Authority lacked jurisdiction, the CBDT circular/notification dated 29.03.2022 vesting exclusive power in the NFAC to issue Section 148 notices. Held: petition covered by Co-ordinate Bench decisions in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh vs. Union of India (CWP No. 21509-2023, decided 29.07.2024), which allowed identical petitions with liberty to the revenue to follow the procedure under the Act, 1961 and proceed accordingly, if so advised; respondent counsel did not dispute coverage. Petition disposed of in terms of those judgments; pending applications disposed of.

CWP-18570-2025

1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

147

CWP-18570-2025 (O&M) Date of Decision:-08.07.2025

C V Cotton Traders Gidderabaha

....Petitioner

Vs.

Income Tax Officer Ward 2 (2), Muktsar Punjab ...Respondent

CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present: Mr. Abhinav Narang, Ms. Parnika Singla and Mr. Abhishek Periwal, Advocates, for the petitioner

Ms. Urvashi Dhugga, Sr. Standing counsel with Ms. Nisha, Advocate for the respondents.

SUDEEPTI SHARMA, J.

Challenge in the instant writ petition is to notice dated 25.06.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and consequential actions, for AY 2019-2020.

Learned counsel for the petitioner contends that the issue involved in the present writ petition is covered by the judgment passed by a Co-ordinate Bench of this Court in the cases of Jatinder Singh Bhangu vs. Union of India and others , passed in CWP No. 15745-2024 and connected matter, decided on 19.07.2024 and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023 and other connected matters), decided on 29.07.2024 .

Learned counsel appearing for the respondent has also not disputed the same.

We have heard learned counsel for the parties and perused the

Gaurav Arora 2025.07.11 16:36 I attest to the accuracy and integrity of this document

CWP-18570-2025

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whole records of the case.

The petitioner has challenged the notice dated 25.06.2025 issued under Section 148 of the Act, 1961 and consequential actions, for AY 2019-2020, on the ground that the Issuing Authority had no jurisdiction to issue the same, in view of the circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that the NFAC has exclusive power to issue the notice under Section 148 of the Act, 1961.

A Co-ordinate Bench of this Court in Jatinder Singh Bhangu’s case (supra) and Jasjit Singh’s case (supra), allowed the writ petitions on the same issue, as raised in the present writ petition, by granting liberty to the revenue to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised.

In view of the above, the present writ petition is disposed of, in terms of Jatinder Singh Bhangu’s case (supra), decided on 19.07.2024 and Jasjit Singh’s case (supra), decided on 29.07.2024

All the pending applications, if any, also stand disposed of.

(LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE

08.07.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

Gaurav Arora 2025.07.11 16:36 I attest to the accuracy and integrity of this document